Intel and Tesla form joint venture for $20bn TeraFab semiconductor manufacturing project in Austin, Texas

Intel and Tesla announced a joint venture to establish the $20 billion TeraFab semiconductor manufacturing facility in Austin, Texas, adjacent to Tesla’s headquarters. The project aims to produce 1 terawatt (TW) of compute annually to power advancements in AI, robotics, and autonomous systems. Intel CEO Lip-Bu Tan and Elon Musk formalized the partnership during a meeting at Intel’s headquarters, with Musk confirming the facility’s role in producing chips for space data centers, advanced vehicles, and Tesla’s Optimus humanoid robots. Tesla previously dissolved its Dojo team in August 2025 but rehired its former lead, Anant Nivarti, as silicon engineering lead in April 2026 to support the project. The joint venture leverages Tesla’s existing chip designs, including the Dojo D1, and Intel’s manufacturing capabilities to accelerate production cycles to nine months, compared to the industry standard of one year.

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Intel

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Intel is a technology company that designs and manufactures a wide range of products, including microprocessors, chipsets, and other components. They are involved in infrastructure through their technology solutions for data centers, networking, and edge computing.

Tesla

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Tesla is a technology company that focuses on electric vehicles, clean energy, and energy storage. They invest in and develop infrastructure projects related to their core business, including solar panels, energy storage systems, and electric vehicle charging stations.